Water and Wastewater Rates - Effective October 1, 2017

Background

Prior to fiscal year 2017, for at least 22 years the City’s water and sewer rates had not been adjusted to keep up with the rising cost of service, and of maintaining the critical infrastructure that delivers it.

The primary driver of the need to increase rates is the need to replace critical utilities infrastructure throughout the City.

In November of 2016 voters approved an $11.6 million bond referendum to fund water line and wastewater line replacements throughout 2017, 2018 and 2019. Supporting that indebtedness requires an increase in water and wastewater utility rates. The City's financial management policies recognize that it would be inappropriate to subsidize utility improvements (Enterprise Fund) with property taxes (General Fund). Utility rates have to be sufficient to cover utility costs.

Working with a water rate consultant designated by the Public Utility Commission of Texas, the City developed a rate structure guided by these objectives, to: cover the cost of service, support the capital plan, incentivize water conservation, provide for operational contingencies, and react to surface water rate changes.

The City needed substantial overall rate increases to meet stated objectives. Responsive to the public input received, the original proposal (first presented in April 2016 and the subject of a Town Hall Meeting in July 2016) was modified to shift more of the rate increase from the monthly base charge to the volumetric side of the equation and to phase-in the rate increase over five years (fiscal years 2017 – 2021) rather than all at once.

Background Documents

Billing Options

New Rates

On September 18, 2017 City Council adopted the FY 2018 budget which includes new water and wastewater rates. The rates adopted for FY 2018 reflect an across the board increase of 17.5% in water and wastewater rates. The adopted rates are effective October 1, 2017 and will be reflected in the November 2017 utility bill.